Ibstock will close its defined benefit (DB) scheme to future accrual from the end of the month, it has announced.
The brick maker first mooted the possibility in August, when it launched a consultation on the closure after its scheme fell from surplus to deficit.
As of 30 June 2016, the scheme had an actuarial deficit of £19.4m, compared to a £17.4m actuarial surplus as of 31 December 2015.
At the time, the company blamed falling bond yields following the Brexit vote. They fell even further after the Bank of England's decision in August to cut interest rates and expand its quantitative easing programme, although yields have risen somewhat since.
The company also noted it had seen a sharp increase in liabilities when it reassessed its scheme demographic profile.
In a trading update on 16 January the company confirmed the scheme will close on 31 January, with all current members moved to a defined contribution scheme.
The decision is expected to affect 850 staff members, approximately 40% of the company's 2,100-strong UK workforce.
Ibstock declined to comment.
It comes as many pension schemes still open to future accrual are increasingly closing given concern over funding levels.
Ibstock's closure will coincide with the end of future accrual for members of the Atomic Weapons Establishment DB scheme. Members voted overwhelmingly to strike over the "insulting" plan, which was announced in October.
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